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The first progress rsip(xy^ of the pro^ci Studies of Hlghiriej^ 
Iiqaact in Indiana^ tltlsd "Ds-c^lopoent of tha Studios'* is attached* 
Ttm sepcrt has boen prepaz«d by I^oera* J* A* Flatcher and H* L* 
HlcteidX of our staff and discassos tl^ dsvalopcsat of -Ub raseareh 
projoetff its ot»ps and ptxrpotse^ and the pxoosdures to b» used in the 
long-term atudsro The ^pedfio flacsLlities ineliidod isi. the porojeet 
6XQ listed and a brief dieeussioa of prstvicus stadias i& indudede 

This progress report was alta pz^ssnted at one of tba separate 
flssslfms of the TreStUi ExigLnaoss at Uw 47th Annual Pur&ie Road 
Sdtiooltk It is subcdtted to tha Bocrd for tlKs record and for relaase 
foz> pub3i.catiea in the Proceadiiigs of the Road School* 

Additiosial progress reposTts on the £3@earch pro;)e<:t vfill be 
ceds sat the dat& eoUaotad w&rsrazxb anal^ruis and report Jng» 

SeepeotfuIIy etilziittedy 

Harold U Kichael 



est f» Zm Ashbaudtes* G* A« &vilcing (Ko B* Scott) 

J« R* Cooper Jm ?• IIcLaugh3JUi 

W. L« DeZffh R* S* m.U» 

W* B. Ooets R. S. HiUa 

F* F* Havi^ J* 7« Sl^rUis 

F. S. Kill ^. L. Waling 

Q» Ak l9onard9 E. Ja Ycdsr 



Joseph A. Fletcher, Jr. , Graduate Assistant 


Harold L. Michael, Assistant Director 

Joint Hi^way Research Project 

Project No: C-36-64 

Pile No J 3-5 

Purdue University 
Laf aye t te , I ndiana 

June 21, 1961 

Digitized by tine Internet Arciiive 

in 2011 witii funding from 

LYRASIS members and Sloan Foundation; Indiana Department of Transportation 


Effective transportation is indispensable to economic progress. 
The economic level of achievement of any society is dependent upon, and 
a measure of, the efficiency of the transportation system serving the 
society. V.ithout adequate facilities for moving people and goods, 
economic and social activities can be carried on only in a limited, local 
way (Ij.* Throughout history the most advanced areas in the world have 
been those whose transportation facilities were the best and most 
efficient. Any area, whether a faim, village, city state or country 
must have adequate transportation facilities available to permit 
effective competition for markets for the products of that area, and to 
permit the economic availability to that area of imported goods, as well 
as raw materials, capital and labor. 

The history of this country provides a graphic illustration of 
the impact of transportation upon the grovrth and development of a 
society. For two hundred years the sole means of transportation in this 
country was by water - excluding walking, horseback-riding, or conveyance 
in some type of animal-drawn vehicle. Cities and towns grew along the 
coastlines, rivers and canals. The steam locomotive then came into its 
own, and spread to the west, not because the demand for transportation 
facilities in the vrest existed, but because of the tremendous effect of 
transportation in promoting development was recognized. After the 
facility existed, then the demand grew, and cities developed alongside 
the rails almost overnight, bringing tremendous growth and pro^rity to 

""'Numbers in parentheses refer to list of references 

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areas viriiich had been very sparsely populated or even completely xm- 
developed prior to the existence of the railroad. The railroad has 
its limitations, however, in that it was not flexible enough to permit 
expansion of this developed prosperity to all areas. The next step in 
the transportation evolution was the development of widespread acceptance 
of the automobile as a means of private transportation, and of trucks 
as a means of transportation for a wide variety of consiuier goods and 
raw materials. The motor vehicle continued the expansion and development 
process of the economy in areas untouched by the railroads. 

Now, hovever, the transportation problem is changing. It is no 
longer a problem of not ha-ving the mode of transportation flexible 
enough to permit development in remote areas, but rather that the exist- 
ing facilities have not been meeting the increasing demands made upon 
them. The way of life ir. the United States is becoming much more complex, 
the demand for more and better consumer goods is increasing, and this 
country is approaching the point where transportation facilities are 
beginning to strangle economic growth. In other ijords, economic progress 
in this country has brought the economy to the point where, for the first 
time since the development of the railroad, the ability of the transporta- 
tion system to handle the requirements made upon it is being taxed. 

In order to encourage and promote continued economic development 
and growth, the transportation s2/stem in this country must be improved. 
The society of the United States is a dynamic one, and it is vital to the 
economic system to be able to move goods, people and products quickly 
and economically. An increasing standard of living creates demand for 
improvements in transportation vjhich when realized create, in tum> 
opportunity for an increasing level of economic activity. Within limits, 

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the transportation system of any area has a cause and effect relationship 
on the economic welfare of the people in that region, and by improving 
the transportation system the entire society benefits. The maximization 
of these benefits, however, is a major problem. 

One of the basic components of the transportation system in this 
coiintry is the vast network of highviay facilities* This neWork is 
composed of well over three million miles of roads and streets serving, 
in some capacity, virtually every area of the country. Until the 
beginning of the National System of Interstate and Defense Highways, 
known as the Interstate System, few miles of new highwaj^s, on new 
locations, had been constructed in this country for the past thirty 
years. Even the Interstate System, vast and expensive though it is, 
vd.ll when completed constitute less than two per cent of the total 
mileage of highv;ays in this country. The major difficulty with the highway 
system is not that the total iriileage is insufficient, nor is it that 
the facilities are not properly located. Rather, the problem lies in 
the fact that highways, in ^neral, are antiquated in design, structurally 
and geometrically, to the extent that there is not sufficient capacity 
now, in many locations, to meet the current traffic demands, and certainly 
not the future reqiiirements. 

The problem then is to improve and/or reconstruct the highway 
system in such a manner as to provide the maximum benefits to the entire 
population of this country. Too often in the past, highways have been 
improved by resurfacing existing lanes and adding additional lanes to 
meet capacity requirements with a canplete lack of regard for the effects 
on adjacent property and property in the immediate ai^a. So long as the 
required capacity was obtained it was assumed that the overall effect was 

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In more recent years, the concept of access control was developed, 
mainly due to the example of the toll roads, with their success in moving 
high traffic volijmes withoiit the i^estrictions caused by roadside develop- 
ment. It is now a widely recognized fact that access control tends to 
preserve the benefits to movement of traffic for the economic life of a 
facility, and because of this the use of access control has become, or is 
becoming, increasing]^ widespread. Controlled-access facilities have a 
history of accident reduction, higher speed traffic flow and more 
convenience. The direct benefits to the motorist have been obvious and 
substantial. There is another aspect of access control and other highway 
ijigjrovements, however, about which much less is known. This is the 
economic effect on the adjacent and neighboring areas caused by highway 
impiTOVements* These areas may be benefited or damaged to varying degrees, 
and these effects should be considered an integral part of any study 
undertaken to determine the benefits due to a potential highway improvement. 
Any facility will have somB effects on the adjacent area, but insufficient 
information is curi^ntly available to predict the scope or extent of these 
effects caused by different types of highway improvements. 

In the hope of supplying much needed information in this area, 
a long-term are search project on the impact of highway improvenBnts on 
adjacent area was initiated in Indiana. The Joint Highway Research 
Project of Purdue University, the State High^'jay Commission of Indiana 
ajnd the Bureau of Public Roads are the cooperating agencies in this study. 

Scope and Purpose 

This project is tentatively scheduled to last for a period of 
at Jaast ten years, during which time infornation on the effect of 
highway improvements on the adjacent areas, including land use changes, 

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land value changes and changes in characteristics of highway travel will 
be studied for several types of highway facilities. A study of this type 
vd.ll permit analyses of differences in changes which occur adjacent to 
various facilities and changes which occur with time for a single facility. 
By using a study area sufficiently large to include a substantial portion 
of the affected areas, the extent to which the effects of highway 
improvements vairy vdth distance from each of the facilities may also be 

The general purpose of this study is to provide information on 
the effects of highway inprovements. Such infonnation would provide for 
more efficient, economical, and beneficial highvjay location and re- 
location in the future. 

An additional purpose, but not to be considered of secondary 
importance, is to provide information which will permit more equitable 
purchase of rights-of-way for future highway inprovensnts. This portion 
of the study involves a parcel by parcel analysis of tracts involved in 
partial takings for right-of-way purposes. Currently, if the property 
owner and the State do not agree on the value of the portion taken, 
condemnation proceedings are necessary. On occasion, the courts have 
awarded damages iiiiich the State considers excessive and on other 
occasions the property owner has not been satisfied. There is no 
satisfactory method available, no good tools available, to aid in 
reaching a mutually satisfactory solution. This study will attempt to 
provide such tools by developing individual case histories of remainders 
of parcels involved in partial takings, ^^ emphasis on chainges in land 
use and land value of such remainders. 

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Facilities Included 

The specific types of highway improvements to be studied aret 

(l) an vrrban bfy-pass vdth complete control of access, 

^2) a rural highviay with conplete control of access, 

(3) an urban fcjy-pass with little or no control of access, 

(4) a rural highway with little or no control of access, 

(5) a bridge and its approaches in an \irban area, 

(6) a major highway interchange near a metropolitan area. 

The specific facilities corresponding to the types of improvements 
listed above are: 

(1) the Interstate 65 by-pass around Lebanon, Indiana, 

(2) a thirteen mile portion of Interstate 65 from the south 
end of the Lebanon by-pass southeastwardly to the inter- 
change with Interstate 465 northwest of Indianapolis, Indiana, 

(3) the U, S. 31 by-pass around Kokomo, Indiana, 

(4) U. 3. 31 from the south end of the Kokomo by-pass to the 
north edge of Marion County, Indiema, 

(5) the U. S. 231 bridge over the Wabash Hiver connecting 
Lafayette and West Lafayette, Indiana, 

(6J the interchange connecting Interstate 65 and Interstate 465 
northwest of Indianapolis, Indiana. 

Facilities 1, 2 and 6 are continuous portions of Interstate 65 
extending southeastwardly from the north edge of Lebanon to approximately 
eight miles northwest of the central business distidct of Indianapolis* 
Facilities 3 and 4 are continuous portions of U. S. 31, extending from 
the north boundary of Kokomo to the north edge of Marion County. The 
locations of the facilities are shown in Figure 1. 

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Procedure of Study 
This series of highway iu^sact studies was initiated July 1, I960 
by the Joint Highway Research Project at Purdue University. The initial 
phase of these studies consisted of determining what facilities should be 
included and the approximate sizes of the study areas surrounding these 
facilities; determining what types of data were reqtiired and establishing 
procediires for the collection of these dataj and determining the base 
year for the studies to provide sufficient time prior to the highway 
improvement to establish initial conditions. 

Table 1 shows a summary of the six highway iiprovements, the 
base years chosen for these facilities, and the study area sizes. 

Facility Ba^ Year Width of Study Area 

1. Lebanon by-pass 1945 4-6 miles 

2. Interstate 65 1950 4-6 miles 

3. Kokomo by-pass 1945 4-6 miles 

4. U. S. 31 1945 4-6 miles 

5. U. S. 231 bri-dge 1950 variable 

6. Interchange- I-65 and I-465 1950 4-6 miles 

It is anticipated that the study area sizes given above will be 
sufficiently large to eliminate the necessity for control area studies. 
Control areas are areas chosen for study Which are as nearly similar as 
possible in all respects to the study areas, except that they are beyond 
the infltaance of the liighway improvement, for the purpose of providing 
control data on such variables as land values. By comparing results in 
the study and control areas, the differences are asstuned to be caused by 

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proximity to the highway iB5)rovenient« These studies will not use the 
control area approach, as such, but will concentrate on analyses of 
changes occuriring in bands of various widths at different distances from 
the facilities involved. 

The initial data collection will consist of obtaining complete 
information for the base year on the study area and the date and extent 
of changes from the base year to I960 relative to land lose and 
development, land value, traffic characteristics in the area and other 
selected items. Similar information for each year after I96O will tten 
be gathered as it occurs so that all data are reasonably current at all 

The resiilts of the data collection phase and of ird.tial studies 
of the data will be reported in a series of progress reports for each of 
the highway facilities. Additional and periodic progi*ess reports will 
be issued throughout the study period as sufficient data become available 
to warrant analysis. 

Previous , Investigations 

The State of California pioneered the economic impact studies with 
the conpletion of a study of land prices and land use along California 
freeways in 1947* The California Division of Highways conducts economic 
impact studies as a regular part of the State highway operation, as well 
as continuing case studies of remainders of properties after partial 
takings for right-of-way, including severance damages and land values. 

In the last ten years many states have initiated research into 
the area of economic impact of highway improvements. Some of the major 
effects studied are land use, land value, general economic effects, 
effects on agriculture, tax revenues, traffic patterns, safety, industry. 

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residential development, i*etail business and many others. A partial list- 
ing of some major completed or in-process studies, indicating the effects 
studied and the conclusions reached, if any, are given belcw. 

1. I-lassachusetts Institute of Technology completed an economic 
impact study of 1-lassachusetts Route 128. This study provided a 
comprehensive report of industrial development along approximately 55 
miles of limited access highway around Boston. The study showed a 
remarkable increase in industrial investment along this route, and 
indicated that the predominant factor motivating this industrial movement 
to Route 128vas ths "desire for ease of regional access". (2). 

2. A study of the land value inqjact of expressways in Dallas, 
Houston, and San Antonio, Texas was inade by William G. Adkins of the 
Texas TranspoI^iation Institute. This study indicated that properties 
adjacent to these freeways appreciated in value considerably more than 
properties located as little as two blocks away from the freeways, or the 
control areas used in the study "outside any possible zona of influence 
of the freeway" (3). 

3. The University of Connecticut is conducting a study of the 
economic and social effects of the Connecticut Turnpike, with speciaj. 
emphases on nHnufacturing, tourist accommodations, retail establishments 
and sales, real estate, and local governrasnts and services (4)» 

U* Western Business Consultants, Inc. have completed a study for 
the Arizona State Highway Commission dealing with the economic inqjact 
of proposed locations of the Interstate System in the Flagstaff area. 
This study is a location study concerned with highway business, land use, 
tax revenues, and user benefits and construction costs (5)» 

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These few examples of studies conducted in various areas of the 
country give an indication of the scope of the problem, and the 
varied approaches taken by researchers in attempting to determine the 
various economic effects of highway improvements* The very natui^ of 
the problem makes it difficult to find completed studies, as most studies 
of this kind are concerned to some degree idth changes in land values, 
which must be measured by some indicator, such as selling prices as 
transactions occur* The completed studies cannot be considered to 
indicate the total impact of a facility on land values, because this 
would assume that the more immediate changes in land values noted in 
these studies are the total changes* It is quite possible that parcela 
of land in the vicinity of new highway facilities iri.ll continue to show 
changes in value different from "control areas" for a considerable period 
of time* Sufficient time has not elapsed since recent highway in^srovements 
to enable most studies to determine if this is the case. 

The interest in the area of highway impact is great and numerous 
publications of findings are available* Several summaries of the 
published studies in this area have been made and are of tremendous 
value to any one interested in this area. One of these is listed in the 
attached list of references (6) and those interested are referred to it 
as one of the most complete which has been published* 

It is hoped that the "Studies of Highway Ir[^)act in Indiana" will 
materially contribute to a better understanding of the impact of highway 
improvements and to better planning and development of highway systems 
in Indiana and throughout the world* 

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Idst of References 

1. Bigham, Truman C. , and Roberts, Merrill, J., Transportation f 
ilcGraw-Hill Book Company, Inc. , 1952. 

2. Transportation Engineering Division, I'iassachusetts Institute of 
Technology, Economic Impact Study of Fiassachusetts Route 128 ^ 
December, 1958. 

3. Adkins, Vdlliara G. , "Land Value In^jacts of Expressways in Dalla^ 
Houston, and San Antonio, Texas", Highways and Economic Develop- 
ment . Bulletin No. 227, Highv/ay Research Board, 1959* 

4. Storrs Agricixltural Experiment Station, College of Agriculture, 
University of Connecticut, The Economic and Social Effects of 
the Connecticut Turnpike on Eastern Connecticut; A Research 
Prospectus . 

5. Western Business Consultants, Inc., Phoenix, Arizona, The Economic 
Impact of Proposed Locations for the East-West Interstate in the 
Flagstaff Area. January, 1957* 

6. Pillsbury, "barren A., The Economic and Social Effects of Highway 
Improvement ; An Annotated Bibliography . Virginia Council of 
Highway Investigation andResearch, Charlottesville, Virginia, 
May 1961. 

Figure I